Question

The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not pay any dividends during the period
Year Price (dollars)
1989 .......... 1.20
1990 .......... 2.09
1991 .......... 4.64
1992 .......... 5.34
1993 .......... 5.05
1994 .......... 7.64
1995 .......... 10.97
1996 .......... 20.66
1997 .......... 32.31
1998 .......... 69.34
a. Estimate the average annual return you would have made on your investment.
b. Estimate the standard deviation and variance in annual returns.
c. If you were investing in Microsoft today, would you expect the historical standard deviations and variances to continue to hold? Why or why not?


$1.99
Sales1
Views99
Comments0
  • CreatedApril 15, 2015
  • Files Included
Post your question
5000